LP_WoodyCreek_Webinar_FullTranscript_2025-06.txt

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Okay, welcome everybody. Really appreciate your time. We've got something super excited about and we're gonna go into all the details here. So what if I told you that we are over budgeting expenses and under projecting income and we're still on track to deliver over a 20% annual return on investors or return on investment to our investors? That's one of the reasons why I'm super excited about this deal. Sounds too good to be true, right? So when this came about, a solid six weeks looking into everything possible about the deal, about the market, about the economics, looking for a reason to say no, I did not want to distract what I'm doing here in Phoenix and some other stuff I have going on. So I was looking for a reason to say no. And after six weeks of turning over every stone possible, well, it all led to positive things and I was just blown away. And so here we are, we've got this property under contract, closing in a couple of months and I'm excited to share it with people that I know and people that I like. So I've got. Well, over the last 10 years, I've put together over 25 deals and I think at the get go, this one is the most exciting out of all of them. And so I think over the next 45 minutes or so as we go through the details, you will understand why I'm super excited and why the Woody Creek condos asset deserves a spot in your portfolio. All right, so after many years of being an entrepreneur, I have personally learned that, that if you want to go fast, you do things on your own and if you want to go far, you do things with a team, with exceptional people. And so I've got some exceptional people on my team right here. Mike Escobedo is my partner. He is the boots on the ground. Mike is a two time Indiana state champion and he's also responsible for hundreds of millions of dollars in real estate transactions. He's going to talk a little bit more as we get going. Leif Anderson is our fund manager and he has been involved in software startups, dental practice roll ups, H Vac, business, Consol. And he's deeply tied in real estate. He's been investing for over 20 years. Chelsea here is, well, she's my marketing and communications expert. She is a prior global manager for EXP with a ton of experience working with developers and other real estate investors. And she is the strategy and magic behind bringing out my passion and my analytical nature and my philosophical thinking and putting it into words that people can resonate with. So I'm surrounded by greatness and proud to be in your company. Thank you all for being here. We were going to move forward. Quick disclaimer. This is a real estate investment and it is a 506C offering, meaning that we can only allow accredited investors. Now, with any investment, it is just that it is an investment, there is risk involved and there is no way that we can predict the future. Okay, so we do everything. All the numbers that we're going to talk about here, it's all based off of our experience and what we feel are conservative projections. But we can't predict the future. Every investment is a risk. In terms of the accredited investor life, can you help? For those people that don't understand what that term means, can you help us inform them?

Yeah, absolutely. In general, an accredited investor is either an individual or business that has a financial means and sophistication to make investments that are not available to the general public. And typically, there's a few ways that you can qualify to do so. First of which is to have a million dollars worth of net worth outside of your primary residence. If it's just an individual income, you could have about 200,000 per year. But to have it for two years in a row, if it's a household income combined, it'd be 300,000 also for two years in a row. And then there's a few other ways where if you have certain certifications, like a series 7 or 65, 82, a few others, then you could qualify that way as well.

All right, so if you are not an accredited investor, you're still welcome to listen. And you never know, maybe you can participate in one of our future deals. So here's what we're going to go over. Anything and everything about the deal, table of contents and some of these slides I'm going to flip through and you'll have a chance to review this in detail afterward. But I need to be cognizant of time. So, quick summary of the investment. 24 unit property in Shearerville, Indiana. There's a lot of upside in. Basically what we're going to do is some cosmetic renovations and get some below market rents, up to the average market rate for rents. And the property is 12 years old, very minimal maintenance, and it's a nice project. The returns that we're projecting on this are very, very strong, especially compared to all the stuff that I look at in Phoenix. And it's in a stable market, stable market, line market, a little bit different than what we experience here in Phoenix. Some Highlights Purchase price on this property is five and a half million. We are putting in two million between the down payments and the capex and reserves. Minimum investment in this property is $50,000. We are projecting a six year hold. We put in 10 years but really we're looking at six years and we could talk about that a little bit more. We've got two investment classes. Class A is 250 and up investment dollar wise and with that we are offering an 8% preferred return 7030 initial split until 17% IRR is reached to the investors and then the split moves to 50 50. And if you're not familiar with this, what that means is, you know what if we hit it out of the park on this deal and we really kill it, we over project, then we get to share a little bit more of the upside, that's all that is. Class B is a $50,000 minimum that comes with a 5% preferred return, 6040 initial split and a 15 IRR hurdle until the 5050 kicks in. And later on in the deck we'll talk about, we'll show you what an example investment returns terms of dollars and cents. AssetStream Properties is my company, if you don't know me, this is my real estate firm and at the moment we've got about $20 million in assets under management. It's a business that I built myself slowly by myself without the right partners and it took me a while to build. Most of these assets are fully owned. I do have a handful of partnerships but right now that looks we're a little bit over 20 properties and about a hundred doors at the moment. I've got four of those in infinite status which if you don't know means I've taken all my money out or my partner's money out and we've redeploy that money elsewhere. We still own those assets with no money in it. Kind of the holy grail and that's why I like this infinity sign. But I am a conservative in Nature. Our total LTV for the portfolio is 55%. So unlike a lot of guys out there, I am not over leveraged right now and I do not sell properties very often but the last one that I did achieved an 1100% cash on cash return over five years and it was pretty nice. A little bit more about me. So yeah, I mean I have, well I've escaped the rat race, okay. And I did it with my own money which is kind of cool. I'm in a position every day where I get to choose what I want to do and what I choose to do is this right here. I hunt and I source off market deals on a daily basis. I analyze them, I dive deep into the numbers and the comps and I put together real estate investors because I love watching my money make money. And at the point of my career right now I'm just hyper focused on spreading the wealth. I want to create these positive ripple effects and bring in more people around me to share in the expertise that I've built over the last 10 or 15 years of doing this. Aside from that, I've got another company called Envision Service Group. We offer painting and roofing services for residential commercial clients in, in the Phoenix area and even multi state right now. But I've got a team that runs that and so that's not my day to day. Real estate is my 100% focus and passion and I call it my ikigai, if you're not familiar with that term. It is a Japanese phrase and it is the intersection of doing what you love, what you're good at, what is needed and what's valuable. And so I'm blessed and I'm proud to be in that position every day. And this right here is, is it coming to fruition when I get to share in partnerships? But my background, I've got extensive background in construction and project management. I worked for a Fortune 500 firm in Phoenix here for several years building residential communities. My, my construction team does a lot of our work and we've just got a lot of ties there. I've been a licensed real estate agent since 2007. However, I don't do transactions, I only use it for myself. I'm not a transactional guy. I'm a long term equity builder. So anyway, that's a little bit about me. Our team right now, we've built in the. So this is our boots on the ground here in Phoenix. Why don't you talk a little bit about yourself.

Hey, thanks Pete. Impressive bio and record. I appreciate you starting that intro for all of us. But yeah, it was great meeting Pete on this particular deal that we've locked up and contract. I'm super excited about it. I'm super excited to bring this webinar to everyone and thanks for having me and thank you to your team for putting all this together for us Right now we're positioned to help our investors make a whole lot of money on this deal. Just a little bit about my background. I did as Pete mentioned mentioned, I started off in wrestling, had a great career, two time state Champ went undefeated my senior junior year, made a lot of big commitments, and ended up landing a scholarship at Michigan State. And that's really been the driving force of my character and who I am. So I found that to be ideal when working in real estate. So, you know, I'm. I'm the. I'm just like Pete. I'm the. The deal hunter. I would go out there and find a deal. So as you can see my track record, I've sold over $255 million in sales just in real estate alone. And that was my single job, you know, right out of college. Some other businesses as well, while I was dabbling into real estate. When I speak about finding $255 million of sales, yeah, that's a lot of hard work. And again, I attribute that to wrestling. When I first started out, I was at a big firm at Marcus and Millichap, one of the top companies as. As most of the folks and investors know who they are. And I became the pacesetter. I won the pacesetter award there. And I was the. One of the top climbing agents in that firm. And as if you visited my website at Invested Investments Elevated, you'll notice my background is in the mobile home and park space. I've sold as high as $40 million parks and as low as $1 million park. So that's where I'm coming from. That's really my background in this space. So I've sourced a lot of deals, hundreds of deals. I've underwritten deals. I have extreme amount of experience in that underwriting process and really tying the deals together in escrow and things like that. So I'm proud to have that in my background and really to work on this deal with Pete. And just, just so the investors are aware, I am going to be boots on the ground on this particular property. So I'm excited to do that. Why Indiana? Why Shareville, Indiana as well? When we were looking for deals, I initially was looking in Phoenix because I live right here in Phoenix, and I started making a database in my hometown in Indiana. My family, big wrestling background. I said, hey, why don't I find some deals out in Indiana and I can actually move out there and be next to the property and have a home next to my family and do real estate full time. So I decided to make a database and do a cold call session with the folks out there in Indiana and landed a deal. So I was excited to get on this deal. I pass it over to Pete, and when I pass it over to Pete, we Try to beat it up as much as possible for six weeks. We couldn't find any holes. So I'm excited about that. And so I'll be boots on the ground there when we're tearing in into the property to to do the reno schedule that we've got lined up. I've got plenty of management experience. I also ran a painting and construction business. So I do have the background and the knowledge when it comes to that management. And as as a matter of fact, here in my Phoenix home, I actually did my luxury flooring in the house. So I can push the the contractors out there and make sure they're getting the job done and doing it right and making sure we're getting the right product at the right price as Enough about me. Pete, I know you've got some other things lined up on this webinar, but if you guys have any other questions to learn about our background, please ask us.

Yeah. So Mike, good stuff. Mike's a rock star in his own world for sure. Construction experience. He's even got property management experience. His wife is an ex property manager. So all across the board, his boots on the ground winning team. I mean man, we talk every day and we just hit it off and we've talked about. I've seen many partnerships fail and I've seen some partnerships take off like a rocket. And I think we're at the beginning of a rocket because we are just so complimentary role in this from Phoenix is basically the support I can I'll be helping do everything remotely, but Mike will be the boots on the ground. So I mentioned earlier, if you want to go far, you go with partners. There's a book that I read a while back called who not how and it is amazing but it goes to say that the importance of collaboration on hitting your goals. Okay. And so if you've read that book, you might resonate, but everybody here is somebody else's who okay, you guys watching this? As the investors, we are your who. Okay? To create these returns. You as the investors are our who to put this deal together with the money. Mike is my my who to to be the boots on the ground. I am Mike's who to pull this all together in the back end and help things asset manage and keep things coordinated. Life is our who helping with the fund management and investor relations. Chelsea is our who for putting this beautiful deck together and making it in words that actually make sense to people. So who's your who? Who's going to help you get to that next level and achieve your Goals that you just set for this year. Hopefully we're that who for you and this is a good start for your year. Let's move through this a little bit more and get to some good stuff. All right, Investment highlights. This banks. Okay. The bank is the seller and we negotiated this with the seller. The seller is the person that built this property 12 years ago. But we've got incredible terms here. It's a six year term step up rate starting at 3.25% for the first two years, goes up to 375 for year three and four and then four and a half for five and six. So it's a blended rate at 3.88% I mentioned it's a six year hold. We actually also negotiated into this deal that we can extend this loan, this note, for an extra year for only a half a percent. It's ungodly cheap. Like any bank or other way that you're going to extend a loan is going to charge at least a point, maybe two. So it just gives us an extra year if we need to or even if we want to. If the rates are not better than what we've got right now and we're cash flowing, it gives us another option, strategic value add. Like I said, we're doing some cosmetic simple stuff on a 12 year old building. There's nothing major but the market rents are just way below market. We're going to get into that a little bit more. This 2095 per month dollar amount is less than the average of the comps. Okay. And so we're being ultra conservative and there's more to come on that exit strategy flexibility. So this is not your typical apartment. These are 24 individually parceled condos. So we are buying them together. The, the, the seller built them together as a package. But it just gives us one more option, should I say in the future if we wanted to sell off the units individually? I don't know that that is will be the right strategy, but options are good. Okay. The financial projections on this property when we pencil this out super conserv, which we're going to get into are incredible. 16 to 20% IRR over a 20% average annual return and more than doubling your money in six years for the investors. All right, right now we've got two vacant units which gives us immediate access to go in and get some work done, get our system dialed in and either have a model home or just keep things turning. We've got a whole turnover schedule planned and it'll be nice to really just get started without having to wait. All right. The business plan, simple. Like I mentioned, we're going to go in and renovate units, increase rent. We're going to have to move tenants around but that's part of it. We will offer the newly renovated units to the tenants that we need to move out. So hopefully it's not too much pain there. These units are all two bedroom two bath condos, 1350 square feet each. This right here is a video of one of the balconies. We've got more videos coming to show you exactly what this property looks like. There's the woody creek back there, nice spacious balcony. They even have ceiling fans up there. There. Here's the interior of one of the two story units. I'll let this play a little bit. As you can see they've got nice vaulted ceilings. These units all have their own garages. It's in an upscale neighborhood and they're all individually metered like you would expect.